By Mark Chediak | Bloomberg
Edison International said transmission operations of its Southern California utility were managed responsibly, even if investigators determine the equipment sparked a deadly fire near Los Angeles.
The company is confident Southern California Edison “would make a good faith showing that its conduct with respect to its transmission facilities in the Eaton Canyon area was consistent with actions of a reasonable utility,” Edison Chief Executive Officer Pedro Pizarro said during the company’s earnings call Thursday.
Edison is facing mounting scrutiny for the possible role its equipment may have played in the Eaton wildfire. California’s utilities have started some of the state’s worst wildfires, pushing one of them — PG&E Corp. — to declare bankruptcy and leaving investors on edge. Edison has lost about a third of its market value since the Eaton Fire erupted Jan. 7, destroying more than 9,000 structures and cause damage estimated at $7 billion to $10 billion.
Under California reforms designed to improve utility wildfire safety practices, a utility can recover from customer damage claims related to a fire tied to its equipment if regulators determine that it acted prudently.
Pizarro said the size and scope of the Los Angeles wildfires have raised investor concerns about the durability of the state’s $21 billion wildfire insurance fund set up to cover claims from blazes started by utility equipment.
The company is certain policymakers will strengthen the fund and make other changes to shore up the financial health of the state’s utilities. Pizarro added the utility would like to see near-term fixes to help reassure its investors.
Edison said it continues to look into the possibility that its transmission facilities started the fire.